Multiple choice

The original cost of a machinery is Rs. 4,15,000. The estimated life of an asset is 20 years and net scrap value is estimated to be Rs. 65,000. What will be the amount of depreciation to be charged every year? Use straight line method to calculate the answer.

  1. Rs. 20750

  2. Rs. 24000

  3. Rs. 17500

  4. Rs. 3250

  5. Rs. 128
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Depreciation =cost of machinery- net scrap value / estimated life 415000 - 65000 = 3500035000/20= 17500 It is the correct answer

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